Fairer funding for charities

More than £60 million for pilot projects focusing on essential services and eradicating child poverty

A new Fairer Funding pilot to deliver on the Scottish Government’s top priority of eradicating child poverty will provide additional multi-year funding in the form of 45 grants to organisations across Scotland.

The funding, subject to budget approval, will support projects in areas including health, education, poverty and culture and have a total value of £61.7 million in 2025-26 and £63.2 million in 2026- 27.

Speaking on her visit today to the Gathering, the largest third sector event in the UK, Social Justice Secretary Shirley-Anne Somerville said: “I know many charities, faced with rising costs and falling donations, need more security and stability to enable them to plan and develop.

“Child poverty, in particular, requires longer-term interventions to help achieve the solutions we want to see. For that, the third sector needs financial stability and certainty. That’s why I have prioritised delivering on our commitment to provide more multi-year funding where we can to support the vital work of the third sector in Scotland, as part of our fairer funding approach.

“The pilot is the first step in mainstreaming multi-year funding agreements more widely across the third sector. It will give organisations the ability to plan for the future and make the most of their resources.

“The pilot’s focus on grants connected to tackling child poverty and the delivery of frontline services to our communities will maximise the impact of longer term funding and support the delivery of our number one priority, eradicating child poverty.”  

Scottish Council for Voluntary Organisations (SCVO) Chief Executive Anna Fowlie said: “The voluntary sector has a crucial role to play in delivering essential services across Scotland that people and communities rely on.

Multi-year funding models are vital, providing security to voluntary organisations and, crucially, allowing them to get on and deliver for people and communities.

 “We welcome the Scottish Government’s commitment to piloting multi-year funding for a range of voluntary organisations across Scotland – a first step, we hope, towards rolling out Fair Funding principles to voluntary sector funding.”

Organisations to receive multi-year funding for 2025/26 and 2026/27

Social Justice

Scottish Refugee Council

Scottish Empty Homes Partnership

Homeless Network Scotland

Housing Options Scotland

Poverty Alliance

CentreStage – Social Innovation Partnership

COVEY – Social Innovation Partnership

Flexibility Works – Social Innovation Partnership

Heavy Sound – Social Innovation Partnership

MsMissMrs – Social Innovation Partnership

Street Soccer – Social Innovation Partnership

WorkingRite – Social Innovation Partnership

MCR Pathways

Economy and Gaelic

Scottish Mountain Rescue

Constitution, External Affairs and Culture

Youth Music Initiative

Sistema Scotland

Health and Social Care

Cruse Scotland Bereavement Helpline

Penumbra Self-harm support pilots

BASICS Funding PHEC BASICS Scotland

The Listening Service Samaritans

Communities Mental Health and Wellbeing Fund for adults

Communities Mental Health and Wellbeing Fund Management

Autism Advice Line Scottish Autism

Young Scot Carer support funding

Active Play Development Programme Inspiring Scotland

Active Play Development Programme Actify

Community Food Networks Edinburgh Community Food

Community Food Networks Lanarkshire Community Food and Health Partnership

Community Food Networks Community Food Initiative North East

Community Food Networks Glasgow Community Food Network

Drugs Policy: Core Funding Scottish Families Affected by Alcohol and Drugs

Drugs Policy: Family Recovery Initiative Fund Scottish Families Affected by Alcohol and Drugs

Fetal Alcohol Spectrum Disorder FASD Hub Scotland Service 

Finance and Local Government

Planning Aid Scotland

Education and Skills

Dyslexia Scotland

Children’s Advocacy for Children’s Hearings

Who Cares Scotland

Inspiring Scotland

Children in Scotland Enquire National Advice and Information Service on Additional Support for Learning

Scottish Book Trust Bookbug

Access to Childcare Fund

Scottish Association of Minority Ethnic Educators

Justice and Home Affairs

Victim Centred Approach Fund

Apex Scotland

Medics Against Violence

These pilots are in addition to the multi-year funding announced last week by Creative Scotland, which has been funded as part of a record £34 million uplift for culture in the draft 2025-26 Scottish Budget.

Child Poverty Act focused minds, but greater collaboration needed, finds Holyrood Committee

A law passed by the Scottish Parliament in 2017, has focused minds on work to reduce child poverty, but more collaboration is needed for the Scottish Government to continue to make progress, according to a report from Holyrood’s Social Justice and Social Security Committee.

The Child Poverty (Scotland) Act was passed by the Parliament in 2017 and aimed to tackle, report on and measure child poverty. It also established targets relating to the eradication of child poverty by 2030. The Scottish Government will publish statistics that will outline whether it has met its interim targets in March.

The Committee wanted to understand the impact of the Act, and in particular the difference that has been made by having a framework for reducing child poverty set in law.

In its report on post-legislative scrutiny of the Act, the Committee has found that, while the Act has instilled an appetite and motivation to tackle child poverty, something most clearly demonstrated in the establishment of the Scottish Child Payment, it has not led to sustained progress towards reaching the Scottish Government’s 2030 targets.

The report outlines a series of recommendations that could help the Government make further progress, including encouraging a culture of collaborative working across portfolios and engaging with local authorities to understand whether they can reach the targets and what further resources they might need.

The Committee also calls on the Government to share details on how its own research into child poverty in rural areas and in the islands has impacted on the Scottish Government’s approach.

Collette Stevenson MSP, Convener of the Social Justice and Social Security Committee, said: “Our scrutiny has shown that the Child Poverty Act has helped ensure the Scottish Government keeps its aim of eradicating child poverty focused in people’s minds.

“However, it looks as though more progress can be made towards achieving the targets that were set out in the act, so we are calling for change on a bigger scale to happen.

“We’re keen to hear more from the Scottish Government about how it intends to do this so that it can meet its targets and make a real difference to the daily life of children and families in Scotland.”

UK Poverty Report 2025: RoSPA highlights increased accident risk for lowest-income Britons

  • Out of four nations only Scotland will see child poverty rates fall by 2029 – JRF
  • Deprivation increases both the likelihood and severity of accidents – RoSPA
  • A joined-up approach is needed to address uneven level of accidents among deprived Britons

Following the release of the Joseph Rowntree Foundation (JRF), the Royal Society for the Prevention of Accidents (RoSPA) is urging the UK government to adopt comprehensive strategies to tackle child poverty and preventable accidents.

Released this week, the Joseph Rowntree Foundation’s UK Poverty 2025 Report reveals that without significant investment in social security, the UK government will not ease child poverty by the end of this Parliament. It also highlights that child poverty rates are significantly higher in England (30 per cent) and Wales (29 per cent) compared to Scotland (24 per cent) and Northern Ireland (23 per cent).

It emphasises the critical role of specific welfare policies, such as the Scottish Child Payment, in reducing poverty, with Scotland projected to see a decrease in child poverty rates by 2029. The report calls for targeted policy interventions to address these disparities and improve living standards across the UK.

The release follows the recent publication of RoSPA’s ‘Safer Lives, Stronger Nation’ campaign which showed that accidental deaths in the UK have reached an all-time high, with rates increasing by 42% over the last decade.

Accidents are now the second biggest killer of people under 40. In England alone, accident-related hospital admissions for serious injuries have risen by 48% in the past twenty years, hospitalising over 700,000 people annually.

The economic cost of preventable accidents is staggering, amounting to £12 billion every year due to lost working days and NHS medical care.

Dr. James Broun, Research Manager at RoSPA and author of ‘Safer Lives, Stronger Nation’, said:Our major review of UK accident data has already uncovered the full scale and true cost of accidents for the very first time.

“We found that deprivation significantly increases both the likelihood and severity of accidents, compounding existing inequalities and creating a vicious cycle of disadvantage.

“This is why we are alarmed by the Joseph Rowntree Foundation’s findings and support their call for Government action to reduce child poverty, while we reiterate our own call for a national accident prevention strategy to help further reduce economic and health inequalities.”

UK Child Poverty Report 2025

The JRF’s latest UK Poverty shows that under current projections, only Scotland will see a reduction in child poverty rates by 2029, largely due to Scotland-specific welfare policies.

Key findings include:

  • Child poverty rates in Scotland are projected to fall, while rates in England and Wales remain high.
  • If the rest of the UK matched Scotland’s reduction in child poverty, 800,000 fewer children would be in poverty.
  • Specific welfare policies, such as the Scottish Child Payment, are crucial in reducing child poverty.

 Deprivation and accident risk

RoSPA notes that deprivation is often linked to an increased risk of accidents. Factors such as unsafe housing, proximity to busy roads, and hazardous work conditions contribute to this risk. Moreover, economic deprivation is associated with health inequalities, which can exacerbate the severity of injuries from accidents.

Key points include:

  • Deprivation increases both the likelihood and severity of accidents.
  • Health inequalities linked to economic deprivation can compound injury severity.
  • Accidents can further entrench material inequalities by disrupting education and employment, creating a vicious cycle of disadvantage.

A Call for a National Accident Prevention Strategy

RoSPA calls for a National Accident Prevention Strategy to address these issues comprehensively. Such a strategy would focus on improving housing safety, reducing road traffic risks, and ensuring safer working conditions, particularly for those in hazardous jobs.

The Need for Government Action

Both JRF and RoSPA stress the urgency of government intervention. A credible child poverty strategy must include policies that rebuild the social security system, while a national accident prevention strategy is essential to reduce preventable injuries and deaths.

By linking these strategies, the UK can create a more holistic approach to improving public health and social welfare, ensuring that both poverty and preventable accidents are addressed through comprehensive, targeted policies.

Scottish Government: New approaches to eradicating child poverty

Wrap-around support delivering improved outcomes for families

Lessons learned from innovative work with families in Inverclyde are helping deliver new approaches to eradicating child poverty. 

Social Justice Secretary Shirley-Anne Somerville will visit Home-Start Renfrewshire and Inverclyde in Greenock today (Wednesday 29th January) to see work funded under the Scottish Government’s Child Poverty Practice Accelerator Fund, which is helping to reshape services locally and elsewhere in Scotland. 

The Social Justice Secretary will meet staff at the project as well as parents who have benefited from the work which focuses on providing early intervention to support families, particularly those with children under five and those affected by poor mental health.  

Learning from the project is supporting Inverclyde’s Fairer Futures Partnership, which is supporting local services to test and improve how they deliver services to promote family wellbeing, maximise incomes and support people towards education and into sustained employment.   

Ms Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.   

“I’m keen to hear more about how whole family, person-centred support is being developed in Inverclyde through the Child Poverty Practice Accelerator Fund and the Fairer Futures Partnership. 

“Through close partnership between Home-Start and Inverclyde Council, this project provides holistic support so that families can maximise their household incomes, and parents can improve their employment prospects through upskilling and volunteering. Putting this kind of vital support in place means that we don’t just help families in a  crisis but enable them to thrive in the longer term. 

“The Child Poverty Practice Accelerator Fund was set up to support local areas to test new ideas and innovate to improve local approaches to eradicating child poverty. I’m pleased to  have the opportunity to learn more about how this funding is informing Inverclyde’s overall approach to supporting families out of poverty.” 

Swinney: Removing two child limit will help thousands

Progress to eradicate child poverty

Thousands of families will be helped as part of the Scottish Government’s plans to remove the two child benefit cap, First Minister John Swinney has said as he repeated calls for the UK Government to end the policy immediately.

The First Minister made clear that if the UK Government was to scrap the policy, the investment the Scottish Government intends to allocate to its mitigation would be used on other measures to tackle eradicate child poverty.

At an event in Stirling hosted by The Robertson Trust, Mr Swinney addressed representatives from community and third sector organisations across Scotland and set out his vision for a country in which no child lives in poverty.

The First Minister said: “The eradication of child poverty is my government’s number one priority, and I want it also to become our nation’s number one goal.

“The cornerstone of our approach is investment in more dignified and generous social security support.

“It includes the resources we need to build the systems that will allow us to effectively remove the two child cap for families in Scotland.

“I can offer two guarantees today. Firstly, if we are able to safely get the systems up and running in this coming year, the first payments will be made in this coming year – helping to lift thousands more children out of poverty.

“And secondly, if the UK government does the right thing and abolishes the two-child cap across the UK, the resources we have committed to this policy will continue to be used on measures to eradicate child poverty in Scotland.”

Vision for eradicating child poverty in Scotland: First Minister’s speech – 15 January 2025 – gov.scot

CPAG, the Child Poverty Action Group, estimates that mitigating the two-child limit in Scotland could lift around 15,000 children out of poverty: 

https://cpag.org.uk/sites/default/files/2024-12/Cost_of_a_Child_Scotland_2024.pdf

The Scottish Fiscal Commission has also published estimates of the number of children in Scotland impacted by the two-child limit this year, and who would benefit from mitigation were it to commence in 2026-27 (39,000 in 2025-26, rising to 42,000 in 2026-27. 

Mitigating the two-child limit and the Scottish Budget | Scottish Fiscal Commission.

Gordon Macdonald MSP: Budget will deliver meaningful progress to eradicate child poverty in Edinburgh

Gordon Macdonald MSP said the Scottish Budget an “enormous step forward” in achieving the Scottish Government’s mission of eradicating child poverty in Edinburgh as progress begins in ending Labour’s two-child cap.

The two-child cap was introduced by the Tories as part of their programme of austerity and has been subsequently adopted by Labour as one of their policies, despite their previous promises to scrap it.

Across Scotland the cap impacts 83,000 children and 26,000 households – that’s 1,600 families in Edinburgh alone. By ending it the SNP government will lift 15,000 children out of poverty.

Commenting, the SNP MSP for Edinburgh Pentlands said: “The two-child cap is an abhorrent policy that has harmed 1,600 households in Edinburgh.

“Yet it is another Tory policy which Labour has adopted as one of their own.

“With 83,000 children across Scotland impacted, it is right that this SNP Government has made the decision to end the cap once and for all – lifting 15,000 children out of poverty and making progress on the key mission of this government: to eradicate child poverty once and for all.

“It is disappointing that the Labour UK government has chosen to maintain the cap, and I would urge their colleagues in the Scottish Parliament to choose differently and back this budget; made for Scotland, by Scotland.”

Bright Start Breakfasts

SCOTTISH GOVERNMENT ANNOUNCES NEW BREAKFAST CLUB FUND

Thousands of children from disadvantaged backgrounds will benefit from free breakfasts, thanks to £3 million from the Scottish Government.

Announced in the draft Budget for 2025-26, Bright Start Breakfasts will help more primary school children get a healthy start to the day. The initiative will also provide families with childcare, supporting more parents to get to work in the morning.

This investment will build on the current breakfast provision in place, with nearly half of Scotland’s schools already providing access to food before the start of the school day.

Education Secretary Jenny Gilruth visited Clackmannan Primary School, where local children are already attending a breakfast club.

Ms Gilruth said: “Breakfast clubs are a crucial part of the Scottish Government’s key mission to eradicate child poverty.

“We know how important a healthy breakfast can be for children, particularly those who are most at risk of poverty, and these clubs will help set children up for the day so they can achieve their learning potential.

“Bright Start Breakfasts will build upon the support that we are already providing families in the latest Budget, including lifting the two-child cap, expanding free school meals, the school clothing grant and education maintenance allowance – ultimately giving families across Scotland vital help through the ongoing cost-of-living crisis.”

Families across Scotland benefit from over £1 billion in social security support

New figures show over £1 billion paid out to help end child poverty

New figures show that the Scottish Government’s five family payments have reached a landmark figure since their launch, paying over £1billion to families across Scotland to help end child poverty.

The latest statistics released from Social Security Scotland reveal that between February 2021 and September 2024 £905.6 million has been paid out in Scottish Child Payment and a further £172.3 million since the launch of Best Start Grant and Best Start Foods.

The combined value of this vital financial support is over £1 billion and has been delivered by Social Security Scotland through its five family payments; Scottish Child PaymentBest Start Grant Pregnancy and Baby PaymentBest Start Grant Early Learning PaymentBest Start Grant School Age PaymentBest Start Foods.

The payments support children throughout key stages from pregnancy then birth, to starting school and on to age 16.

Best Start Grant Early Learning Payment, Best Start Grant School Age Payment and the ‘game changing’ Scottish Child Payment are only available in Scotland.

Cabinet Secretary for Social Justice, Shirley-Anne Summerville said: “Ending child poverty is the Scottish Government’s single greatest priority. At a time when families are struggling with the ongoing cost-of-living crisis, we have been delivering payments which offer vital to support families and children at key stages in their lives.

“There is help during pregnancy and in the months after a baby is born; help paying for early learning; help with that all important first day at school and help with buying the healthy, nutritious food that is vital for developing children.

“Then there is the unique Scottish Child Payment. More than 325,000 children and young people were benefitting from the payment by the end of September 2024. Our modelling projects Scottish Child Payment will keep 60,000 children out of relative poverty in 2024-25.”

 Background

Link to Scottish Child Payment high level statistics to 30 September 2024: https://www.socialsecurity.gov.scot/reporting/publications/scottish-child-payment-high-level-statistics-to-30-september-2024

Link to Best Start Food high level statistics to 30 September 2024: https://www.socialsecurity.gov.scot/reporting/publications/best-start-grant-and-best-start-foods-high-level-statistics-to-30-september-2024

Payment Launch Dates:

  • Scottish Child Payment: 15 February 2021
  • Best Start Grants: 10 December 2018
  • Best Start Foods: 15 August 2019

Payments available for families include:

Parents, carers and guardians can get more information at mygov.scot/fivefamilypayments or by calling free on 0800 182 2222.

Over 6 million children face going to bed cold this winter

Research reveals over 6 million British children could be facing cold bedtimes this winter, with half of parents (49%) worried their children will be cold at home when temperatures drop.

The new data indicated that almost a quarter of Brits (24%) cannot keep their house warm when it’s cold, no matter what they try.

As a result, a third of parents (32%) admit they’ve had to put their children to bed in a cold room and a further 39% worry the temperature of their house is bad for their family’s health on cold days.

The research, conducted by the home heating experts at SpeedComfort, reveals the scale of British homes’ cold crisis, with many homes falling short of recommended healthy temperatures.

On average, Brits anticipate the temperatures inside their homes will drop to 12.8°C this winter. This is five degrees colder than the recommended healthy temperature for adults to live and sleep in (18°C) and three degrees colder than the minimum safe temperature for infants to sleep in (16°C), according to the World Health Organisation (WHO).

The impact of this on families across the UK is significant. According to the NHS, consistently being cold can have a detrimental impact on you and your family’s physical health.

The latest findings support this. 43% claim being cold at home causes them physical discomfort, over a quarter (28%) say they’re ill more often when it’s cold, and 41% report feeling down when they’re cold.

In addition to affecting families, the research found that cold temperatures are set to have a big impact on the UK’s most vulnerable citizens, with older people most likely to be cold at home this winter (37%).

This is concerning, given that they are more susceptible to the mental and physical effects of the cold. Half of over 65s say the cold causes discomfort and almost the same proportion (49%) state it makes them feel low (8% higher than the average Brit).

Wouter Heuterman, CEO of SpeedComfort, comments: “With the cost of living crisis continuing to affect so many families across the UK, it’s heartbreaking to see that so many people are worried about keeping their families safe and warm at home this winter.

“The cold has a huge impact on how we feel both physically and emotionally. For families with children and vulnerable people, the impact of cold temperatures is even further exacerbated.

“So, if you’re worried about the health of your family this winter, it’s well worth considering alternative ways of keeping your home warm when temperatures drop. To help with this, we’ve created a guide for staying warm without increasing energy usage this winter.”

Find out how to stay warm on a budget this winter.

Poverty and Equality Commission produces Workshop Report

As part of its approach to the Commission’s 2023-24 scrutiny of the Scottish Government’s progress in reducing child poverty, the Poverty and Inequality Commission wanted to hear from parents and carers who were a member of the Scottish Government’s ‘priority family types’. These are households types who are at greater risk of poverty.

The Commission worked with eight organisations to organise workshop discussions (and in one case a survey) to gather parent and carer participant views on:

  • What policies to reduce child poverty they were aware of
  • How well they felt policies were working
  • What else they felt was needed to reduce child poverty

This report summarises the views of participants on the three topics above, expanding on the material the Commission published earlier in 2024 as part of its 2023-24 child poverty scrutiny.

The Commission is very grateful to all the participants in our workshops who took time to discuss these issues, and the organisations who we worked with to arrange them.

Download: Report of workshops with priority families in Scotland and their ideas to reduce child poverty (pdf, 422kb)